Tax Policies on Presidential Campaign - Taxation Essay Example
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Voters in 2008 presidential campaign seem to be more interested on economic issues following various economic problems. For example, United States economy subjected the citizens to high prices for gasoline, food, crisis in the housing sector and unfavorable market for credit among other economic problems. The topic of economy has attracted the two presidential candidates i.e. Sen. Obama and Sen. McCain and features prominently as tactic to outdo each on various campaign debates. Top on the economic policy is debate on tax policy. Both Sen. Obama and Sen. McCain campaign trail tries to entice voters with claim that each candidate’s tax policy provides the nation with the best option to rescue Americans from current economic crisis.
Tax Policies on Presidential Campaign
American society regard taxation issues highly. “American culture and history celebrates independence and the spirit of innovation, and the belief that people who built and create businesses should have the right to keep most of what they earn” (American.gov para 2). Both candidates are well aware of society perception of no tax without representation and various public pledges on tax they translate to be litmus test to get to white house. That means tax policy is a major instrument for political influence. Economic crisis reality has resulted to call to suspend gas tax, levy more taxes on major oil companies, levy more tax on wealthy corporation for the sake of equality, others advocating on fair tax. This being in the mind of the public, Sen. Obama and Sen. McCain have come up with tax policies and how they will control public fund if elected he 44th United States president” (American.gov para 2).
Democratic candidate Sen. Obama seems to favor issue of raising tax on the wealth and apply a tax relief for middle class earners and tax cuts to small businesses. This will result to middle class people being able to enjoy over $1,000 tax relief if Sen. Obama is elected 44th President of the United States. His tax plan include a tax credits which seeks to lower amount of taxes paid, making middle class families to pay three time less than what Sen. McCain offers. According to Obama campaign, families making $250000 and above shall pay lower taxes of even lower compared to 1990s tax policies. The wealthiest families of United State who initially enjoyed tax cut in the Bush administration will pay higher tax than it was in 1990s. Sen. Obama tax policy translate to reduced revenue but promise to bridge the spending gap produced by his tax policy through cutting unnecessary spending. In the long run his campaign stated that, his tax policy would result to additional $700 billion to treasury in the next 10 years. Obama’s government will be devoted to sealing tax loophole and use of PAYGO policy seeking for more control of tax payer money (Henry para 2).
On the other hand, republican campaign seems to favor low taxes and recently supported Bush tax policy seeking to cut tax for the wealthiest families an issue he had earlier opposed. McCain’s Presidency offers to seal tax loophole and employment of a simpler tax system. His government would embark on reduced government spending geared to word sealing tax cut. Although he voted against the permanent repeal of the Estate Tax in 2002, McCain campaign has offered opposition to the same. Previously, Sen. McCain had voted against Bush policies on tax cut for wealthiest American families but later supported the in 2006, in his campaign for white house and offer to make these tax cut permanent. His campaign claimed that its tax proposal would focus on middle income earn more than on the wealthy, ensuring marginal taxes are low.
Comparison of the two candidates’ taxation policies indicated that; Obama would cut taxes for worker as well as their families. Workers and couple would be able to enjoy tax cut of $500 and $1000 respectively. McCain presidency would ensure the taxes are low. That is 15 percent and 35 percent for capital gains and dividends. Corporate would enjoy tax cut from 35 percent to 25 percent. On the other hand, Obama presidency offers tax cut for middle income taxpayers. On the capital gain, democratic candidate plans to eliminate taxes on capital gain for small businesses. Republican campaign offer to give permanent tax credit for resources employed in R&D. Obama favors tax credit seeking to reduce cost of health care(Henry para 3).. He would also provide Americans with simplified taxes replacing current tax credit enabling people to be able to do taxes easily. On the other had Sen. McCain offers to ban internet taxes and cell phone taxes. Both presidential candidates provide similar types of taxes on certain area. For example they both offer to reduce the estates rates and increase the estates taxes exemption as compare to the current law extending to 2011 although Obama’s rates are high. Each of them if elected to be the 44th president would employ mechanism to reduce corporate loopholes (Henry para 4).
In conclusion, United States presidential campaign has been base greatly on the platform of economy due to the current economic crisis sweeping American economy. This translates to being a major decision factor for the voter in 2008 voting. Candidate and the party which come up with economic policies that convince the public that they can relief them from current economic quagmire shall take the day.
American.gov: Tax Policy Source of Debate in U.S. Politics (2008). Retrieved on 3rd November 2008 from; http://www.america.gov/st/texttrans-english/2008/May/20080516080613wltsruh0.6820032.html
Henry, Patrick: Tax policies: McCain vs. Obama (2008). Retrieved on 3rd November 2008 from; http://kevincolby.com/2008/10/20/tax-policies-mccain-vs-obama/.